How do I find the Payer's Federal ID number for United Kingdom Department of Pensions and Overseas Benefits?

[cabald38]

How do I find Payer's Federal ID number for United Kingdom Department of Pensions and Overseas Benefits? Suggestion to use nine 9s did not work. 

[ToddL · Accepted solution]

The United Kingdom Department of Pensions and Overseas Benefits would not have a Payer's Federal ID since it is a foreign government activity. 

You have two options to report this income on your U.S. tax return - you can enter your foreign pension income as a substitute form 1099-R OR you can enter the foreign pension income on Form 1040, Line 21 as "other income" or "foreign pension." (preferable) 

To enter your foreign pension income as a substitute form 1099-R:·        

1. Click the Federal Taxes tab at the top.
2. Select Wages and Income.
3. Scroll down to the Retirement Plans and Social Security section (Use Jump to Full List, if the entire list isn't displayed.)
4. Select IRA, 401(k), Pension Plans Withdrawals (1099-R).  (See attached screenshot.)
5. On the screen “Tell Us Which 1099-R You Have”, there is a box “I need to prepare a substitute 1099-R”. Click on that box and continue.

For electronic purposes, the two letter state ID and zip code may be left blank, it should be fine for electronic filing. 

To enter the foreign pension income on Form 1040, Line 21 as "other income" or "foreign pension",   go to the "Less common income"  section of Federal Taxes > Wages and Income, and select the very last option "Miscellaneous Income". If you choose this way, then you won't have to create a substitute Form1099-R, by filing Form 4852.  However, the end tax result (in terms of United States tax rate and amount assessed) will be identical under both methods.

[bigwills]

In response to this article,  I was not able to efile because my taxes had no EIN for the Pension Centre substitute 1099R.  

[LoganathanB]

You report your foreign pension under less common income. Then you do not need EIN.

• Open your TurboTax
• Click on Wages and Income 
• Click on the less common income
• Click on Miscellaneous income
• Click on other reportable income
• Enter the foreign pension 

Click on the link for more information

Foreign pension

[mckeague]

Hi, this method is a lot simpler that form 1099-R.  However, when I used this method, it increased my state tax which wasn't the case with the substitute 1099-R method.

Is there a way on the state return to back this out?

thanks

John 

[Pennyless]

Same issue for Swiss government old age pension

[DianeW777]

Every state return is different and so backing it out may not be an option. You should use the substitute Form 1099-R to complete your return.  Any state that does not tax pension income would not include the distribution when entering using this method.

To enter your foreign pension income as a substitute form 1099-R:·        

1. Click the Federal Taxes tab at the top.
2. Select Wages and Income.
3. Scroll down to the Retirement Plans and Social Security section
4. Select IRA, 401(k), Pension Plans Withdrawals (1099-R). 
5. On the screen “Tell Us Which 1099-R You Have”, there is a box “I need to prepare a substitute 1099-R”. Click on that box and continue.

Once you have the pension entered, carefully proceed through your state return.  If you are using TurboTax CD/Download version you may be able to make adjustments using the Forms mode and override option.  

• How do I override an amount calculated by TurboTax?

Important:  Under normal circumstances, you shouldn't have to override anything. Returns that contain overrides cannot be e-filed and may not be covered under our 100% Accurate Calculation Guarantee. We're providing these instructions to customers who understand the risks, but wish to proceed anyhow.

[mckeague]

Thanks DianneW777,

but I don't think this new info will be useful, since I am using the on-line TurboTax and  I need to revert to using the substitute 1099-R method to avoid paying extra state taxes in Illinois.

Under "normal circumstances" TurboTax is great, but for those of us that have an unusual circumstance e.g. a benefit payment from a foreign government, it can get cumbersome. I cant e-file this year because of this problem. This is not a one-off issue. It will occur every year for thousands of us. Will this be fixed for next year's TurboTax program?

JM   

[DianeW777]

it's possible, however the IRS has some rules regarding the use of the Substitute form 4852. This is the issue regarding the e-file and more importantly the lack of a federal EIN.  These numbers are tracking mechanisms for the IRS. 

I understand by having the ability to adjust the state return, you could use the 'Other' income option without the need to mail your tax returns.

I will pass on your suggestion.

@mckeague

[KimmyK]

In the past, 11-1111111 and/or 99-9999999 would work for the missing 1099-R.  Now, nothing works and you have to paper file.  Paid Turbo tax and now have to paper file.  I could have done the paper form myself and avoided that payment had I known it would no longer accept e-file.  After years of e-file, I guess I’m done with Turbo Tax.  Miscellaneous income doesn’t work either.  

[TaxDoer99]

I had the same problem.  Eventually, 90-9090909 worked.  Good luck. 

[Pennyless]

This worked for my Swiss pension 1099-R!  All 1's worked in previous years, but not this year.  Thank you for the info - Intuit has to fix this.  It asks if the alternative 1099-R has a foreign address but then ignores this problem.